26 Large Retailers Besides J.C. Penney Are Closing Waves of Stores

In the wake of a disappointing holiday season, J.C. Penney (JCP) said recently that it will close 138 stores stores by the end of the summer. The store closures represent 13% to 14% of the company's current store base and less than 5% of annual sales. They have a negligible impact on net income. J.C. Penney said same-store sales at the locations were "significantly below" the remaining store base and operate at a much higher expense rate due to poor productivity.

The company expects $200 million in annual costs savings from the efforts.

"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers," J.C Penney Chairman and CEO Marvin Ellison conceded.

The news shouldn't come as a shock.

As TheStreetreported in January, Ellison said at a real estate conference the company would move to close more stores -- after shuttering seven last year -- following a lackluster holiday season. "We have certain locations that we readily admit we have to downsize," Ellison said, adding, "There are some smaller market locations where we have to decide, does the mall or our store meet our brand standards?"

Here are several other retailers continuing to rightsize their store fleet amid the shift to digital shopping or other external pressures.

The company was already in the process of closing 150 under-performing Sears and Kmart stores to preserve cash. But, Sears recently announced the closure of an additional eight Sears and 35 Kmart unprofitable stores.

Amid continued sales declines, teen apparel retailer Abercrombie & Fitch (ANF) said that it will close 60 stores in 2017, mostly in the United States. The company is now exploring a sale.

BCBG has gone bust, and will close stores as a result.

The female fashion apparel chain is closing 118 locations across the country under the BCBGMaxAzria, BCBGeneration, BCBG Factory and Herve Leger banners in the wake of a Chapter 11 filing. More than 300 stores will remain open during the company's reorganization.

The struggling electronics and appliance retailer began liquidating its assets recently after failing to find a buyer following an early March Chapter 11 bankruptcy filing. The company closed all of its 220 stores in May, resulting in roughly 5,000 layoffs across the U.S.

Pier One Imports wants to save money, so is closing a ton of stores.

Pier One Imports (PIR) said that it will close 100 stores through 2019 in order to cut costs. The home goods retailer closed 16 stores last year, and plans to shutter 17 this year.

After another challenging year of sales that caused it to close five stores, Tiffany & Co. (TIF) plans to keep pruning its store base in 2017. The high-end jeweler will close six stores this year.

The company currently operates 313 stores around the world.

Bebe will vanish.

Amid years of plunging sales and pressured profits, women's apparel retailer Bebe (BEBE) has thrown in the towel. The company said on Apr. 21 that it will close all 175 of its stores.

Wave goodbye to your local Payless, possibly.

Struggling discount shoe retailer Payless filed for Chapter 11 bankruptcy protection recently. As part of the filing, Payless closed about 400 stores as it tries to improve its balance sheet and restructure its debt burden. The company said it may close another 408 stores.

Payless is owned by private equity firms Golden Gate Capital and Blum Capital Partners. The group took over the Payless chain in 2012 as part of the dismantling of Collective Brands.

Gander Mountain has gone bust.

Gander Mountain, one of the largest outdoor retailers in the U.S., filed for bankruptcy protection under Chapter 11 in April, listing $500 million to $1 billion in assets and liabilities.

The company, which touts itself as being "America's Firearms Supercenter," blamed its filing on slowing foot traffic. The company will shutter 32 stores.

GameStop is under siege.

After a tough fourth quarter that saw same-store sales crash 16.3% due mostly to tepid mall traffic and people downloading digital games, GameStop (GME) will ax a ton of stores this year. The video-game retailer expects to close as many as 225 stores from around the globe in 2017.

A GameStop spokesman said the store closures are part of a multi-year strategy the company announced in 2011, where it said it would right-size its global store presence by closing between 2% - 3% of its global store base each year.

The company does, however, anticipate opening about 35 new collectibles stores globally, and another 65 new tech focused stores.

Struggling fast-food chain Subway closed 359 locations in 2016, marking its first ever net reduction in the number of restaurants. The company's total restaurant count fell 1.3% to 26,744.

Updated from Apr. 17 with new details.

Michael Kors isn't looking sexy.

With its handbags no longer super popular, Michael Kors (KORS) is trying to clean up its distribution. The company will close 100 to 125 wholesale locations -- mostly spots inside of department stores -- over the next year.

Lululemon is focusing on its core brand.

The yoga apparel maker said it will close 40 of its 55 Ivivva children's stores this year. Nearly half of the sites will be converted to Lululemon (LULU) stores.

Gymboree is on the brink of ruin.

The struggling children's apparel retailer recently filed for chapter 11 bankruptcy protection. It has confirmed it will close 350 stores.

Bed Bath & Beyond is putting some stores to sleep.

Bed Bath & Beyond's (BBBY) CEO Steven Temares said the retailer is considering closing 80 to 100 stores after seeing its profits sink 33% in its recent first quarter. Speaking to analysts, Temares acknowledged that the company has come under fire for not trimming its 1,548-store fleet like other retailers have.

True Religion hits the skids.

The denim-focused retailer said on July 5 that it filed Chapter 11 bankruptcy. It is unclear how many stores will be closed as part of the reorganization. The company closed 18 stores in 2016.

Children's Place slims down.

Children's Place (PLCE) CEO Jane Elfers recently told TheStreet the company will close 300 stores by 2020 in a bid to operate more profitably.

Kraft Heinz shares are set to open at an all time low Friday after a dismal fourth quarter, coupled with an SEC notice and a grim 2019 outlook, loped more than $12 billion in market value from the packed food group in pre-market trading.

U.S. stock futures rise as investors continue to monitor the U.S.-China trade talks; Kraft Heinz plunges after it posts a fourth-quarter loss of nearly $13 billion, says it received a subpoena from the Securities and Exchange Commission, and plans to slash its dividend; Pinterest reportedly files for an IPO.